Apr 25, 2025 (Baystreet.ca via COMTEX) --
U.S. chemical giant Dow Inc. (DOW) has paused construction of a $9 billion U.S. net-zero petrochemical project north of Edmonton, Alberta, citing weak market conditions.
Formerly known as the "Dow Chemical Company," the Michigan-based concern is one of the three largest chemical producers in the world.
It previously committed to build the "Path2Zero project" in Fort Saskatchewan, Alberta northeast of Edmonton.
However, after a "comprehensive review," Dow says that it has decided to push back the timeline for the project, although no new timeline for its completion has been announced.
Dow says it is adjusting to what is sees as a "lower-for-longer earnings environment" in coming quarters due to macro-economic and market uncertainty caused by U.S. trade tariffs.
As such, management at Dow says they won't need the Canadian project's output as early as thought and will pause construction on the petrochemical plant until market conditions improve.
The delay means that Dow won't be spending $1 billion U.S. in Canada this year.
The project was expected to create 5,000 jobs in Alberta during the construction phase and about 450 full-time jobs once the plant was operational.
Dow has said the Canadian petrochemical site will be the world's first net-zero greenhouse gas emission petrochemical site.
The stock of Dow Inc. has declined 25% so far this year and is down 47% over the last 12 months. The shares currently trade at $29.76 U.S. each.
COMTEX_464908739/2559/2025-04-25T09:42:35
